Timber is an valuable and often overlooked asset on timbered properties. Whether you are buying or selling a timbered property, in both cases you need to know just what it is you are buying or selling and how much it is worth.
In some cases, the timber can be worth more than the value of the land!!
An essential knowledge of forestry and the timber market can help understand how the value of the timber contributes to the overall value of a timbered property.
press to zoom
Timber appraisals and resource assessments
As a professional and independent forestry consultant, Jamax Forest Solutions undertakes timber viability studies for landowners and has provided expert witness reports/testimony for several legal cases.
When selling a timbered property, the vendor may need an Information Memorandum so that potential buyers can be well informed or simply wish to factor in the value of the timber into the sale price for the property. When buying a timbered property, a buyer may need to check if the information provided by the vendor is correct, what the likely future costs and revenues are, and may need an estimate of the forest’s market value to assist in negotiations with the vendor.
A combined knowledge of tree species, forest management, the economics of timber production, forest inventory techniques, the economic impact of various silvicultural techniques, the regulatory environment that control timber harvesting on private lands, the local timber market and the various log product specifications that the local timber industry buys are essential factors in providing an accurate, realistic forest appraisal.
As a Registered Forestry Professional™ (RFP 110) with Forestry Australia, Jamax performs all timber appraisals in accordance with ACFA's A Standard for Valuing Commercial Forests in Australia (2012) and is able to complete complex forest appraisal assignments and meet committed completion dates in an on-time manner.
press to zoom
A valuation assignment may require a formal fair market value appraisal meeting the Australian Accounting Standards Board's AASB 141, which is mandatory for formal general purpose financial reporting as required under the Corporations Act 2001, but generally a less formal timber appraisal is required. The objectives and the client's intended use of the analysis and associated report will determine the appropriate scope of the assignment.
The cost of undertaking a timber appraisal and supplying a report will vary depending on the complexity of the assignment, area of forest, locality, access issues, type of evaluation required, etc. Please contact us for a obligation-free quote.
Copies of a sample appraisal report, with complete pricing profile for all log products to local customers, and Jamax Forest Solution’s Log Product Specifications can be downloaded below.
Please call Steve on 0427 990 317 for a free, no-obligation quote!!